California Residents.. tax on a lease
11-01-2015, 08:39 PM
#16
Three Wheelin'
This is true, but in CA there is an exception called the 10 day rule. If you purchase your car off lease and sell it within 10 days (although I have been told CA DMV gives you up to 30 days) you will not have to pay sales tax in CA. So, if your residual is $60K and you find a buyer and sell it for $65K (after you buy out the lease), if you are honest you'll only owe tax on the $5K gain.
11-02-2015, 01:53 AM
#17
Instructor
Join Date: Nov 2014
Posts: 196
Likes: 0
Received 0 Likes
on
0 Posts
This is true, but in CA there is an exception called the 10 day rule. If you purchase your car off lease and sell it within 10 days (although I have been told CA DMV gives you up to 30 days) you will not have to pay sales tax in CA. So, if your residual is $60K and you find a buyer and sell it for $65K (after you buy out the lease), if you are honest you'll only owe tax on the $5K gain.
11-02-2015, 01:02 PM
#18
Burning Brakes
The person who started this thread is talking about being in Texas while leasing in CA. Might CA want the total tax on a non-resident lease? Also, as Texas does tax the whole car might Texas and California have some cross deal so Texans pay the full tax on a lease from CA. This is certainly possible.
11-02-2015, 07:59 PM
#19
Three Wheelin'
The person who started this thread is talking about being in Texas while leasing in CA. Might CA want the total tax on a non-resident lease? Also, as Texas does tax the whole car might Texas and California have some cross deal so Texans pay the full tax on a lease from CA. This is certainly possible.